The Next Shock Will Shatter The Global Economy

World Economic CrisisThe eurozone is on a path into a deep recession. As one of the largest and most advanced economies in the world, its centrality to a system of highly-interconnected global supply chains is taken for granted.

David Korowicz, a physicist and human-systems ecologist, recently authored a lengthy 78-page white paper titled: "Trade-Off: Financial System Supply-Chain Cross-Contagion: a study in global systemic collapse."

It explores the increasing systemic risk brewing in the global financial and trade systems. Using complex systems analysis, he explains how within weeks of the next major economic shock, like a major bank failure or a country exiting the eurozone, contagion would quickly spread through global supply chains, causing an "irreversible global economic collapse."

Korowicz warns that in the next crisis, "neither wealth nor geography is a protection. Our evolved co-dependencies mean that we are all in this together."

We read the paper and boiled it down to its key points.

Click here to see how the global economy could collapse

Source: Business Insider

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